Ibikunle Amosun, the former governor of Ogun State, has defended his administration’s decision to terminate a contract with a Chinese firm, a move that has now resulted in the seizure of Nigeria’s presidential jets by the company.
Amosun explained that the contract termination was necessary due to a dispute between two Chinese companies vying for control of the Ogun Guangdong Free Trade Zone (OGFTZ).
This explanation comes after Nigeria’s Foreign Affairs Minister, Yusuf Tuggar, warned state governments against entering into international agreements without consulting the federal government. Tuggar’s warning followed a French court’s order allowing the Chinese company, Zhongshan Fucheng Industrial Investment Co Limited, to seize three of Nigeria’s presidential jets. The company claims the Ogun State government breached a business contract in 2016, leading to this legal action.
In his first public statement since the scandal broke, Amosun detailed the events that led to the contract’s termination. He revealed that upon assuming office in 2011, his administration encountered a serious dispute between two Chinese firms—Zhongfu International Investment FXE and China Africa Investment FXE—over management rights of the OGFTZ.
“The rivalry between the companies soon worsened and threatened public peace and safety within the zone and neighboring communities,” Amosun stated. He explained that Zhongfu International, initially presenting itself as a genuine stakeholder, provided damaging information about its rival, China Africa Investment FXE, and was subsequently appointed as the Interim Zone Manager in March 2012.
However, Amosun said his government later discovered that the claims made by Zhongfu International were false. “We later found out that Zhongfu International merely sought to de-market China Africa Investment FXE and covertly take over the state-owned assets and management rights,” he said.
The Chinese government, through a diplomatic note in March 2016, clarified that China Africa Investment FXE was the rightful investor. Following this clarification, the Ogun State Government, after consulting with the State Security Services and the Nigeria Export Processing Zones Authority (NEPZA), terminated Zhongfu International’s contract in May 2016.
Amosun acknowledged that this decision led to multiple legal battles, but insisted that his administration acted in the state’s best interest. “We successfully defended our actions at all levels, and they all agreed with our position,” he said, adding that the issue escalated after his administration left office in May 2019.
The former governor urged the federal government not to succumb to Zhongfu International’s demands, stressing that “it is concerning that a purely business dispute between two Chinese corporations has now escalated into an unlawful attempt to appropriate Nigeria’s sovereign assets.”
In response to the situation, Foreign Affairs Minister Yusuf Tuggar emphasized the importance of state governments consulting with federal authorities before entering international agreements. Speaking from Malabo International Airport in Equatorial Guinea, Tuggar assured that both the Ministry of Foreign Affairs and the Attorney General’s office are working to resolve the issue legally and diplomatically.
Tuggar criticized the lack of federal oversight in the agreement made by the Ogun State Government, stating, “This is part of the problem when sub-national actors like state governments take it upon themselves to go into agreements without recourse to the Ministry of Foreign Affairs. When it goes awry, we are left with the problem to deal with.”
The contractual dispute dates back to 2010, when Ogun State entered into an agreement with Zhongshan Fucheng Industrial Investment Co Limited to develop a free-trade zone. The contract was terminated in 2016, leading Zhongshan to pursue arbitration against Nigeria under the bilateral investment treaty between China and Nigeria. An independent tribunal later awarded Zhongshan $55.7 million, plus interest and legal costs, which the company is now seeking to recover through the seizure of Nigerian assets.